BERLIN, Nov 21 (Reuters) – Germany is examining introducing state guarantees for investments in renewable energy, Economy Minister Robert Habeck said on Monday, as Berlin attempts to become more independent in scaling up renewables capacity.
Europe’s biggest economy aims to produce 80% of electricity from renewable sources by 2030 but it is heavily-dependent on imported components, mainly from Asia.
The state support could include purchase guarantees for renewable energy production, Habeck said, adding that these guarantees could somewhat overcome uncertainties regarding project permits.
“It might make sense for the state to step in with a guarantee and say ‘you can order before the approval is there’, then the ramp-up of the industry will be correspondingly faster,” Habeck told a news conference after a summit with renewable energy representatives on the topic.
Berlin is also considering a so-called hybrid equity instrument for financing energy transformation investments, he said.
At the European level, Germany is also discussing introducing sustainability criteria, such as CO2 footprint of renewable energy components to support local production, Habeck added.
“That would mean that … wind turbines or solar panels would not have to be transported halfway around the world,” he said, adding Berlin plans to present more concrete proposals in the coming weeks.
Supporting renewable energy production in Europe has become even more urgent with the United States introducing its Inflation Reduction Act which could push industry out of Europe, the minister said.
The law provides a tax credit of 30% of the cost of new or upgraded factories that build renewable energy components and gives tax credit for each eligible component produced in a U.S. factory and then sold.
